How Dow's US$100m Investment Will Strengthen Supply Chains

Dow has announced the progression of investment projects totalling approximately US$100m to expand its global specialty silicones manufacturing operations.

The investments, running through to 2027, will expand the company's specialty silicones capabilities across the US, China and Japan, with a focus on advanced silicones and processing capabilities.

The US chemical and materials manufacturing giant, which describes itself as the world's largest and most integrated silicones producer, says the expansion aims to meet growing global demand in mobility, electronics and healthcare applications.

Strategic expansion across key manufacturing hubs

The investment programme includes liquid silicone rubber manufacturing expansions at Dow's facilities in Carrollton, Kentucky, US and Zhangjiagang, China. These expansions are designed to support high-performance applications across mobility, electronics and healthcare sectors, where material specifications and reliability remain critical procurement considerations.

Capacity expansions for engineered silicone materials are scheduled in 2025 in Songjiang, China and Fukui, Japan.

Additional expansions are expected in 2027 at Auburn, Michigan, US and Zhangjiagang, China. These materials support advanced electronics applications, including power electronics, thermal and electrical protection and semiconductor packaging, areas where procurement teams face increasing pressure to secure reliable supply.

McKinsey says the semiconductor industry was valued in the range of US$630bn to US$680bn in 2024 and is expected to reach US$1tn to US$1.1tn by 2030.

As the semiconductor industry rapidly expands, fuelled by the growth of AI and data centres, the engineered silicon supply chain will be essential to its growth. 

Supply chain resilience and innovation

Brendy Lange, President of Performance Materials & Coatings at Dow, says: "These investments underscore Dow's focus on scaling specialty silicones materials and bringing innovation closer and faster to our customers.

"By expanding manufacturing and innovation capabilities in these strategic regions, we are investing to meet increasing consumer demand, strengthening our global supply chain capabilities and enabling customers to move faster from innovation to commercialisation."

The company also expanded its Cooling Science Labs in Shanghai, China and Michigan, US, in January 2025 as part of the investment programme. 

Market growth drives sourcing considerations

According to Fortune Business Insights, the global silicones market size was valued at US$21.6bn in 2025 and is projected to grow from US$22.9bn in 2026 to US$34.7bn by 2034, exhibiting a compound annual growth rate of 5.3% during the forecast period.

Amid skyrocketing demand for products in microelectronics, energy electronics, consumer electronics components and advanced mobility, demand for specialty silicones continues to grow faster than GDP.

Dow says its capabilities have expanded to support growing demand for silicone solutions used in mobility intelligence modules.

Silicone materials are key to manufacturing reliable advanced driver assistance systems (ADAS) providing the stability needed to secure and protect intricate components.

A recent report from Moody's noted that the average modern car now carries more than 1,700 semiconductors.

The global automotive ADAS market size was estimated at US$68.26bn in 2025 and is projected to reach US$79.25bn in 2026 to US$261.62bn by 2034, according to statistics from Fortune Business Insights.